Individual Retirement Accounts (IRAs)

Time flies when you’re having fun. And the sooner you start saving for retirement, the longer you’ll keep the good times coming.

Key Features

Competitive Dividends
No Maintenance Fee
Tax Advantages*

Details

Competitive interest above standard savings rates
No minimum deposit to open
Traditional and Roth IRA options
No setup fees
No monthly or annual maintenance fees
Annual contribution limits apply (see current contribution limits; $6,500 as of 2023)*
Additional $1,000 "catch-up" contribution allowed for ages 50+
Funds can be used to purchase CDs within IRA

Traditional vs. Roth

There are advantages to both traditional and Roth IRAs. One of the biggest differences is the time at which you see the most advantage. A traditional IRA provides potential tax relief today, while a Roth IRA has the potential for the most tax benefit at time of retirement.

Traditional IRA

No income limits to open
No minimum contribution requirement
Contributions are tax deductible on state and federal income tax¹
Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
Withdrawals can begin at age 59½
Early withdrawals subject to penalty²
Mandatory withdrawals at age 72 (or earlier if you have turned age 70½ in 2019 or before.)

Roth IRA

Income limits to be eligible to open Roth IRA³
Contributions are NOT tax deductible
Earnings are 100% tax free at withdrawal¹
Principal contributions can be withdrawn without penalty¹
Withdrawals on interest can begin at age 59½
Early withdrawals on interest subject to penalty²
No mandatory distribution age
No age limit on making contributions as long as you have earned income

¹Subject to some minimal conditions. Consult a tax advisor.

²Certain exceptions apply, such as healthcare, purchasing first home, etc.

³Consult a tax advisor.

Coverdell Education Savings Account (ESAs)

Create an easier transition into college for yourself and your student by setting up a savings account early. A Coverdell Education Savings Account (ESA) provides a tax-free safe place to grow competitive dividends and also financial confidence for a new stage in life.

Set aside funds for your child's education
No setup or annual fee
Dividends grow tax-free
Withdrawals are tax-free and penalty-free when used for qualified education expenses¹
Designated beneficiary must be under 18 when contributions are made
To contribute to an ESA, certain income limits apply²
Contributions are not tax deductible
$2,000 maximum annual contribution per child
The money must be withdrawn by the time he or she turns 303
The ESA may be transferred without penalty to another member of the family
No minimum deposit to open

¹Qualified expenses include tuition and fees, books, supplies, board, etc.

²Consult your tax advisor to determine your contribution limit.

³Those earnings are subject to income tax and a 10% penalty.

educational literature

*Consult a tax advisor.